Customs - Classification of PXI Controllers – Board informs field favourable order of Supreme Court
BOARD had been informed that there are divergent practices regarding classification of PXI Controllers, Input/Output Modules, Signal Converters and Chassis and its parts. Essentially, PXI Controllers are designed for measurement and automation applications, which require high performance and a rugged industrial form. Further, Input/Output Modules are tailored to a specific function as a part of a regulating and controlling apparatus like a sensor, thermostat etc. Therefore, one has to look at the PXI machine holistically for the purpose of classification but some field formations are classifying these under CTH 8471 as Automatic Data Processing machines while others are doing so under CTH 9032 as automatic or controlling instruments and apparatus.
Board invites attention to the Supreme Court Order CA No.5394/2010 (D No.4818/2010), reported in 2010-TIOL-52-SC-CUS. As per this order, PXI Controller constitutes a complete system performing work of measurement-programmable Automation Controllers (PACs) by themselves are not measuring, regulating or controlling instrument but perform specific function as parts of sensors and are classifiable under CTH 9032 89 10. Chassis of PXI provides connectivity and housing for embedded controllers and data acquisition modules allowing them to communicate with each other. Input/Output Module is tailored to a specific function and each of them is a part of regulating and controlling apparatus like sensor, thermostat etc. and their primary function is part of measuring and control system and are classifiable under CTH 9032 90 00.
Accordingly, the Supreme Court set aside the impugned order of CESTAT and allowed the Appeal filed by the department.
So, the Board wants Chief Commissioners to ensure uniform practice of assessment of PXI Controllers, Input/output Modules, Signal Converters and Chassis.
CBEC Circular No. 42/ 2010-Cus., Dated: November 29, 2010